China vows greater iron ore self-sufficiency as ‘deglobalisation tide’ and coronavirus expose mineral supply risks
- In the 2021-25 raw material development plan, Beijing says iron self-sufficiency will be ‘significantly’ increased
- China will also optimise the annual quota mechanism for the production of rare earth, tungsten and other minerals
In the 2021-25 raw material development plan, authorities said iron self-sufficiency would be “significantly” increased by lifting the supply of scrap steel to more than 30 per cent of the total, encouraging domestic mining and reducing steelmaking capacity.
“The raw material industry is the foundation of the real economy and a basic industry that supports the development of the national economy. It is a key area [for China] to gain international competitive advantages,” said the plan jointly drafted by the Ministry of Industry and Information Technology (MIIT), the Ministry of Science and Technology and the Ministry of Natural Resources.
“Such issues, like inadequate safeguards for key strategic resources, need to be resolved urgently.”
The risk to industrial and supply chains has been exposed given the deglobalisation tide and the coronavirus pandemic
China produced 56.7 per cent of global crude steel last year, 41 per cent of refined copper, and remains a global leader making many metals. But its lack of control over upstream mineral resources is an Achilles’ heel for the world’s second largest economy.
